Making Cents Episode 33

By Clip Syndicate

http://chic.clipsyndicate.com/video/playlist/12942/7126788?cpt=8&wpid=2637
Wed, 11 Oct 2017 17:18:01 +0000Making Cents Episode 33Making Cents Episode 33http://chic.clipsyndicate.com/video/playlist/12942/7126788?cpt=8&wpid=2637KLSTcenter hello last time we started talking about key numbers related to retirement planning missed you, but we introduced some numbers around retirement. so katlin when do you want to retire? when can you retire? depending on where you are and how much you are enjoying your work i hear all types of ages. most of us are somewhat aware that our government has taken up laws that have them involved in this decision. based upon our country's history laws have been passed that put requirements upon us while working and while in retirement. most of us are a generation or two away from the great depression that gave rise to what was first called "old age insurance" soon rebranded as social security and then the mid 1960's health care benefits of medicare medicaid. as a result, most people when asked identify to the ages these benefits become available. as you might expect with a government program built on an idea of caring for a fellow american has become quite complex and some might say bureaucratic. back to you a couple of weeks ago we had you close to $1m in your 401k account and those moneys when combined with your social security you were off to the dream retirement. but we didn't put an age to that so let's do that now. typically, the earliest the government will allow you to access your social security benefit is age 62. the other end of the social security spectrum is the age of 70. that is the latest you can start to take your social security benefit. so which age sounds better to you? so as you'd expect these are trade offs here. so how do you decide? let me explain the full concept. we have the age of 62 the age of 70 and another key age is what's called full retirement age. this fra is driven by when you were born. for those born 1960 or later that age is 67. the government would prefer you to wait until fra. to use a simple example. let us say you have worked enough years to qualify for social security. that benefit is calculated and at fra you will receive $1,000. the benefit if started at age 62 would be $750, a 25% decrease for the rest of your life and the other side is if you defer until age 70 the monthly check $1,350. so when you think about your life expectancy this can be significant. if your blessed with good genes and the trend is for you to live until the age of say 90 this for you to live until the age of say 90 this decision can get into the hundreds of thousands of dollars. sounds complicated well it can be and that's why i encourage working with and independent advisor who acts as a fiduciary. because if you start adding spouse scenarios to include divorce or survivor concepts it gets more complex. there are also scenarios where if you choose to take your social